Sustainable Business Model Innovation

Business models combined with artificial intelligence (AI) are a transformational combination with profound implications for sustainability. Integrating AI into business operations, organisations can squeeze resource allocation, reduce waste, and enhance decision-making. Moreover, with markets in flux, business model interest continues to gain momentum as organisations adopt strategies around value capture and managing the supply and demand side of operations. This chapter explores the integration of sustainability and business models, examining how organisations can enhance performance while advancing their sustainable goals and mission. It discusses innovative business models using a value proposition framework. By re-envisioning products, services, and processes, organisations can eliminate waste generation, extend product life cycles, and foster the regeneration of natural systems. Innovative business models are assessed using a United Nations Sustainable Development Goals focus value proposition framework. A business model canvas is proposed with sustainability and SSM issues. The concept of value is a fundamental premise in strategy, and an overarching framework of value capture, destruction, and missed opportunity is considered. From this perspective, the CEO can ensure the organisation is actually delivering meaningful outcomes for its stakeholders. Higher education is the focus of the Mini Case Study, which explores the concept of unlocking value through a multi-sided business model. Jaguar Land Rover’s Reimagine strategy delivers a Strategy Nugget with a sustainability-rich vision of modern luxury by design.